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Falling Earnings Estimates Signal Weakness Ahead for Amkor Technology (AMKR)

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is Amkor Technology, Inc. AMKR, which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in AMKR.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen one estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 70 cents a share a month ago to its current level of 53 cents.

Also, for the current quarter, Amkor Technology has seen one downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 19 cents a share from 36 cents over the past 30 days.  

Amkor Technology, Inc. Price and EPS Surprise

 

Amkor Technology, Inc. Price and EPS Surprise | Amkor Technology, Inc. Quote

The stock also has seen some pretty dismal trading lately, as the share price has dropped 9.9% in the past month.

So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.

If you are still interested in the Electronics - Semiconductors industry, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI. The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Amkor Technology, Inc. (AMKR): Free Stock Analysis Report
 
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
 
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